ALLAN SUGAR (PRODUCTS) LIMITED vs. GHANA EXPORT COMPANY LIMITED [1983]DLCA2083

Date	1983-03-30
Suit No.
Citation No.	[1983]DLCA2083

FRANCOIS JA

MENSA BOISON JA

EDWARD WIREDU J.A.

TAMAKLOE (MISS) FOR TSIKATA FOR THE APPELLANTS.

WONTUMI FOR THE RESPONDENTS.

[1983]DLCA2083
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													<main id="main" class="content" style="min-height: 60rem" >ALLAN SUGAR (PRODUCTS) LIMITED <o:p></o:p>vs. <o:p></o:p>GHANA EXPORT COMPANY LIMITED <o:p></o:p>[COURT OF APPEAL, ACCRA]<o:p></o:p>[1987-88] GLR 922<o:p></o:p><div style="mso-element:para-border-div;border:none;border-bottom:solid windowtext 1.5pt;
padding:0in 0in 1.0pt 0in">

DATE:
30 MARCH 1983<o:p></o:p>

</div>COUNSEL:&nbsp;&nbsp; <o:p></o:p><div style="mso-element:para-border-div;border:none;border-bottom:solid windowtext 1.5pt;
padding:0in 0in 0in 0in">

TAMAKLOE (MISS) FOR TSIKATA FOR THE APPELLANTS. <o:p></o:p>

</div>CORAM:
<o:p></o:p><div style="mso-element:para-border-div;border:none;border-bottom:solid windowtext 1.5pt;
padding:0in 0in 0in 0in">

FRANCOIS, MENSA BOISON AND EDWARD
WIREDU JJ.A.<o:p></o:p>

</div><o:p>&nbsp;</o:p>JUDGMENT OF FRANCOIS J.A.<o:p></o:p>The
appellants (hereinafter referred to as the plaintiffs) as their name implies,
are a company engaged in sugar-cane production. Their dispute with the
respondents (hereinafter referred to as the defendants) is over irrigation
rights on land they acquired from the National Investment Bank (N.I.B.) for the
cultivation of their canes.<o:p></o:p><o:p>&nbsp;</o:p>The facts
of the dispute can be shortly stated. N.I.B. in an apparent drive to sustain
agriculture, provided funds to a vegetable marketing body called the Mankesim
Co-operative Vegetable Growers Marketing Society Ltd. The project was an
unmitigated disaster, and N.I.B lost ¢300,000. To call a halt to further
losses, N.I.B. foreclosed their mortgage with the society and re-allocated the
200 acres of land involved in the venture to the protagonists in this appeal.
On the land were buildings and an irrigation system that were the society’s
assets which N.I.B. also disposed of.<o:p></o:p><o:p>&nbsp;</o:p>The
plaintiffs obtained 50 acres of land and all the buildings previously occupied
by the co-operative society and they were indeed prepared to pay any price to
keep those buildings in their exclusive possession. They do not quarrel with
this disposition. The terms of the plaintiffs’ agreement with N.I.B. are contained
in exhibit E, an indenture of assignment dated 1 May 1978. The plaintiffs, for
the sum of ¢25,000 acquired the rights recited above, for the unexpired term of
the co-operative society’s lease.<o:p></o:p><o:p>&nbsp;</o:p>For their
150 acres of land, the defendants on the other hand, had to pay ¢75,000. But
they sought and obtained from N.I.B. the exclusive right to the use of the
irrigation system. The terms of their agreement with N.I.B. were embodied in an
exchange of letters culminating in exhibits 3, 4 and 6. For the better
appreciation of the defendants’ contract with N.I.B., I would set these out
fully. Exhibit 3 states:<o:p></o:p><p class="MsoNormal" style="margin-top:0in;margin-right:0in;margin-bottom:5.0pt;
margin-left:.5in;text-align:justify;mso-pagination:none;border:none;mso-padding-alt:
31.0pt 31.0pt 31.0pt 31.0pt;mso-border-shadow:yes">“Ghana
Export Co., Ltd. P. O. Box 7663, Accra-Ghana. 6 April 1979. National Investment
Bank, P. O. Box 3726, Accra. Dear Sir, MANKESIM FARMS LIMITED We are writing
with reference to your letter of 21 March addressed to the Secretary to the
S.M.C. and copied to us. As previously indicated, we consider the settlement
figure of ¢75,000 unfair as it represents 75 per cent of the total acquisition
price, when in fact we have been allocated only 50 per cent of the project land
and facilities. In addition the project buildings are occupied exclusively by
Allan Sugar Products Ltd. We however wish to confirm our discussions
(Anteson/Bentil) of 5 April 1978 that we accept the assessment of ¢75,000
subject to the following: (1) that we are given title to 150 acres of the
project land;<o:p></o:p><p class="MsoNormal" style="margin-top:0in;margin-right:0in;margin-bottom:5.0pt;
margin-left:.5in;text-align:justify;mso-pagination:none;border:none;mso-padding-alt:
31.0pt 31.0pt 31.0pt 31.0pt;mso-border-shadow:yes">&nbsp;(2) we have exclusive use of the entire
irrigation facilities attached to the project; (3) in view of the satisfactory
agreement reached; the settlement proposals as contained in letter Ref. No. SMC/CR.
10741 V.4 of 24 May 1977 is withdrawn. Meanwhile, we enclose our cheque for
¢40,000 in the hope that you will be able to accept our proposals to enable the
balance of ¢35,000 to be paid. Yours faithfully, (Sgd.) Henry Bentil Managing
Director.”<o:p></o:p><o:p>&nbsp;</o:p>And
exhibit 4 also states:<o:p></o:p><p class="MsoNormal" style="margin-top:0in;margin-right:0in;margin-bottom:5.0pt;
margin-left:.5in;text-align:justify;mso-pagination:none;border:none;mso-padding-alt:
31.0pt 31.0pt 31.0pt 31.0pt;mso-border-shadow:yes">“National
Investment Bank P.O. Box 3726, Accra. 25 April 1978. The Managing Director,
Ghana Export Co., Ltd, P. O. Box 7663, Accra. Dear Sir, MANKESIM FARM LAND We
acknowledge receipt of your letter dated 6 April 1978 and the cheque for
¢40,000 sent therewith. Upon receipt of the remaining ¢35,000 we shall transfer
title to the remaining 150 acres of the</main>